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/raid1/www/Hosts/bankrupt/TCRLA_Public/211217.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, December 17, 2021, Vol. 22, No. 246 Headlines B E R M U D A STRATUS TECHNOLOGIES: S&P Withdraws 'B+' Issuer Credit Rating B R A Z I L BRAZIL: Could Raise Interest Rates Above 10% in 2022 BRAZIL: Drop in Exports, Balance of Trade Surplus in 2022 Projected C A Y M A N I S L A N D S XANTHOS CAPITAL: First Creditors' Meeting on Jan. 12 XANTHOS INVESTMENT PARTNERS: First Creditors' Meeting on Jan. 12 XANTHOS INVESTMENT: First Creditors' Meeting on January 12 C O L O M B I A BOGOTA DISTRITO CAPITAL: S&P Withdraws 'BB+' Long-Term ICR M E X I C O GRUPO AEROMEXICO: Court OKs Exit Financing Commitment Letters MEXICO: Inflation Quickens Faster Than Expected to 20-year High PLAYA HOTELS: Won't Renew CMO's Employment Contract P E R U PERU: Economic Growth Likely to Have Lost Steam in October - - - - - ============= B E R M U D A ============= STRATUS TECHNOLOGIES: S&P Withdraws 'B+' Issuer Credit Rating ------------------------------------------------------------- S&P Global Ratings withdrew all of its ratings on Stratus Technologies Bermuda Ltd. and Stratus Technologies Inc., including its 'B+' issuer credit ratings, at the issuer's request. S&P's outlook on the companies was stable at the time of the withdrawal. =========== B R A Z I L =========== BRAZIL: Could Raise Interest Rates Above 10% in 2022 ---------------------------------------------------- Rio Times Online reports that this year, the Central Bank of Brazil initiated a cycle of rate hikes to bring them to a current level of 7.75% before the next monetary policy decision, which was to happen Dec. 8. According to the report, this cycle of increases in the price of money "could deteriorate the country's public finances", as they are "susceptible to changes in monetary policy," the report notes. The text explains that the loss of fiscal consolidation initiated in 2016 and the depreciation of the Brazilian real (R$) have increased inflationary pressures, forcing the central bank to raise rates, according to Rio Times Online. Credito y Caucion, the leading credit insurance company in Spain with a 51% market share, points out that the public finances of the South American economy are "particularly dependent" on this change of cycle, the report adds. About Brazil Brazil is the fifth largest country in the world and third largest in the Americas. Jair Bolsonaro is the current president, having been sworn in on Jan. 1, 2019. Standard & Poor's credit rating for Brazil stands at BB- with stable outlook (April 2020). S&P's 'BB-/B' long-and short-term foreign and local currency sovereign credit ratings for Brazil were affirmed in December 2021 with stable outlook. Fitch Ratings' credit rating for Brazil stands at 'BB-' with a negative outlook (November 2020). Fitch's 'BB-' Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) has been affirmed in May 2021. Moody's credit rating for Brazil was last set at Ba2 with stable outlook (April 2018). DBRS's credit rating for Brazil is BB (low) with stable outlook (March 2018). BRAZIL: Drop in Exports, Balance of Trade Surplus in 2022 Projected ------------------------------------------------------------------- Rio Times Online reports that Brazilian exports should reach US$262.379 billion next year, which represents a drop of 4.7% in relation to the US$275.316 billion estimated for 2021. Imports, however, may grow 4.5% from the US$218.094 billion projected for this year, reaching US$227.855 billion, according to Rio Times Online. The forecast, released by the Foreign Trade Association of Brazil (AEB) for the trade balance next year, indicates that the surplus may reach US$34.524 billion, a fall of 39.7% compared to the US$57.222 billion estimated for 2021, the report notes. Brazil is still a hostage of commodities: the country's 15 main export products are commodities. For the AEB executive president, manufactured goods will still take a long time to take the lead in Brazilian foreign trade, the report adds. About Brazil Brazil is the fifth largest country in the world and third largest in the Americas. Jair Bolsonaro is the current president, having been sworn in on Jan. 1, 2019. Standard & Poor's credit rating for Brazil stands at BB- with stable outlook (April 2020). S&P's 'BB-/B' long-and short-term foreign and local currency sovereign credit ratings for Brazil were affirmed in December 2021 with stable outlook. Fitch Ratings' credit rating for Brazil stands at 'BB-' with a negative outlook (November 2020). Fitch's 'BB-' Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) has been affirmed in May 2021. Moody's credit rating for Brazil was last set at Ba2 with stable outlook (April 2018). DBRS's credit rating for Brazil is BB (low) with stable outlook (March 2018). =========================== C A Y M A N I S L A N D S =========================== XANTHOS CAPITAL: First Creditors' Meeting on Jan. 12 ---------------------------------------------------- Xanthos Investment Partners Limited, in liquidation, will have its first meeting of creditors on Jan. 12, 2022 at 11:15 a.m. Creditors should submit notice of intention not later than 5:00 pm, Jan. 10, 2022 in order to join the meeting. The company's liquidators are: Naill Freeman Kalo (Cayman) Limited 38 Market Street, Suite 4208 PO Box 776, Canella Court Cayman Bay, Grand Cayman KYI-9006 Cayman Island XANTHOS INVESTMENT PARTNERS: First Creditors' Meeting on Jan. 12 ---------------------------------------------------------------- Xanthos Investment Partners Limited, in liquidation, will have its first meeting of creditors on Jan. 12, 2022 at 11:10 a.m. Creditors should submit notice of intention not later than 5:00 pm, Jan. 10, 2022 in order to join the meeting. The company's liquidators are: Naill Freeman Kalo (Cayman) Limited 38 Market Street, Suite 4208 PO Box 776, Canella Court Cayman Bay, Grand Cayman KYI-9006 Cayman Island XANTHOS INVESTMENT: First Creditors' Meeting on January 12 ---------------------------------------------------------- Xanthos Investment Portfolio SPC, in liquidation, will have its first meeting of creditors on Jan. 12, 2022 at 11:05 a.m. Creditors should submit notice of intention not later than 5:00 pm, Jan. 10, 2022 in order to join the meeting. The company's liquidators are: Naill Freeman Kalo (Cayman) Limited 38 Market Street, Suite 4208 PO Box 776, Canella Court Cayman Bay, Grand Cayman KYI-9006 Cayman Island =============== C O L O M B I A =============== BOGOTA DISTRITO CAPITAL: S&P Withdraws 'BB+' Long-Term ICR ---------------------------------------------------------- S&P Global Ratings withdrew its 'BB+' long-term issuer credit rating on Bogota Distrito Capital at its request. At the time of withdrawal, the outlook on the rating was stable. =========== M E X I C O =========== GRUPO AEROMEXICO: Court OKs Exit Financing Commitment Letters ------------------------------------------------------------- Reuters reports that Mexican airline Aeromexico said a bankruptcy court has approved its commitment letters regarding exit financing and set a confirmation hearing for the plan for Jan. 18, 2022. Aeromexico filed for Chapter 11 bankruptcy protection in the United States last year, and has been undergoing a restructuring process with creditors and investors. "The joint proposal has the support of our strategic partner Delta Air Lines and a solid group of long-term Mexican investors to meet requirements for foreign investment," Aeromexico said in a statement filed to Mexico's stock exchange. "Aeromexico will continue to work with all key stakeholders to obtain court approval and continues to work to exit the restructuring process under Chapter 11 as soon as possible." About Grupo Aeromexico Grupo Aeromexico, S.A.B. de C.V. (BMV: AEROMEX) -- https://www.aeromexico.com/ -- is a holding company whose subsidiaries are engaged in commercial aviation in Mexico and the promotion of passenger loyalty programs. Aeromexico, Mexico's global airline, has its main hub at Terminal 2 at the Mexico City International Airport. Its destinations network features the United States, Canada, Central America, South America, Asia and Europe. Grupo Aeromexico and three of its subsidiaries sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 20-11563) on June 30, 2020. In the petitions signed by CFO Ricardo Javier Sanchez Baker, the Debtors reported consolidated assets and liabilities of $1 billion to $10 billion. The Debtors tapped Davis Polk and Wardell LLP as their bankruptcy counsel, KPMG Cardenas Dosal S.C. as auditor, and Rothschild & Co US Inc. and Rothschild & Co Mexico S.A. de C.V. as financial advisor and investment banker. White & Case LLP, Cervantes Sainz S.C. and De la Vega & Martinez Rojas, S.C., serve as the Debtors' special counsel. Epiq Corporate Restructuring, LLC, is the claims and administrative agent. The U.S. Trustee for Region 2 appointed a committee to represent unsecured creditors on July 13, 2020. The committee is represented by Willkie Farr & Gallagher, LLP and Morrison & Foerster, LLP. MEXICO: Inflation Quickens Faster Than Expected to 20-year High --------------------------------------------------------------- globalinsolvency.com, citing Bloomberg News, reports that Mexican annual inflation accelerated faster than expected in November to its highest level in over two decades, official data showed, reinforcing bets the central bank will raise its benchmark interest rate again when it meets soon. Figures from national statistics agency INEGI showed inflation in Latin America's No. 2 economy jumped to 7.37% last month from 6.24% in October, according to globalinsolvency.com. That compared with the consensus forecast of a Reuters poll for 7.22%, the report notes. The Bank of Mexico (Banxico) last month raised its benchmark interest rate by 25 basis points to 5%, the fourth consecutive hike, the report relays. It also revised up its expectations for Mexican inflation at the close of this year, the report discloses. Banxico's final monetary policy meeting for the year is due today, Dec. 16. The bank targets inflation of 3%, with a one percentage point tolerance range above and below that, the report relates. Earlier, Irene Espinosa, a member of the central bank's board, said Banxico's monetary policy stance continues to be accommodative and that it should respond forcefully to anchor inflation expectations, the report says. The November figure took inflation to its highest level since January 2001, the report adds. PLAYA HOTELS: Won't Renew CMO's Employment Contract --------------------------------------------------- Playa Hotels & Resorts N.V. will not be renewing the employment contract of Kevin Froemming, the company's chief commercial officer. Mr. Froemming's last day of employment will be Jan. 5, 2022, as disclosed in a Form 8-K filed with the Securities and Exchange Commission. About Playa Hotels & Resorts Playa Hotels & Resorts is an owner, operator and developer of all-inclusive resorts in prime beachfront locations in popular vacation destinations in Mexico and the Caribbean. As of Sept. 30, 2021, Playa owned and/or managed a total portfolio consisting of 22 resorts (8,366 rooms) located in Mexico, Jamaica, and the Dominican Republic. In Mexico, Playa owns and manages Hyatt Zilara Cancun, Hyatt Ziva Cancun, Panama Jack Resorts Cancun, Panama Jack Resorts Playa del Carmen, Hilton Playa del Carmen All-Inclusive Resort, Hyatt Ziva Puerto Vallarta, and Hyatt Ziva Los Cabos. In Jamaica, Playa owns and manages Hyatt Zilara Rose Hall, Hyatt Ziva Rose Hall, Hilton Rose Hall Resort & Spa, Jewel Grande Montego Bay Resort & Spa and Jewel Paradise Cove Beach Resort & Spa. In the Dominican Republic, Playa owns and manages the Hilton La Romana All-Inclusive Family Resort, the Hilton La Romana All-Inclusive Adult Resort, Hyatt Zilara Cap Cana and Hyatt Ziva Cap Cana. Playa owns two resorts in the Dominican Republic that are managed by a third-party and manages five resorts on behalf of third-party owners. Playa reported a net loss of $262.37 million for the year ended Dec. 31, 2020, compared to a net loss of $4.36 million for the year ended Dec. 31, 2019. As of Sept. 30, 2021, the Company had $2.02 billion in total assets, $1.39 billion in total liabilities, and $623.95 million in total shareholders' equity. * * * As reported by the TCR on Sept. 21, 2021, S&P Global Ratings revised its outlook on Playa Hotels & Resorts N.V. to positive from negative and affirmed its 'CCC+' issuer credit rating. At the same time, S&P affirmed its 'CCC+' issue-level rating on the company's secured debt. S&P said, "The positive outlook reflects our expectation that Playa will maintain adequate liquidity. In addition, it indicates that we could raise our rating on the company if the significant recent improvement in travel volumes to Mexico and the Caribbean is sustained and its package average daily rates (ADRs), which are currently significantly elevated relative to 2019 levels, do not moderate materially. Specifically, we could raise our rating if Playa increases its revenue and EBITDA such that it sustains EBITDA coverage of interest expense of more than 1.5x, which would indicate it is able to sustain its capital structure over the long term." ======= P E R U ======= PERU: Economic Growth Likely to Have Lost Steam in October ---------------------------------------------------------- Reuters reports that Peru's economy is likely to have lost steam in October, the central bank said, estimating it would have grown between 4% and 6% in the period, the lowest rate since March, when the economy started rebounding from the pandemic. Economic expectations from the business sector have also deteriorated, the bank's head of economic studies, Adrian Armas, said in a conference call, according to the report. Peru lifted its benchmark interest rate for the fifth month in a row, to 2.5% from 2%, amid persistent inflation, the report relays. Armas added that in 2022 Peru's economy is likely to face "highly positive" external factors, but that benefiting from them will "depend on whether we can manage a context of social and political stability," the report discloses. Socialist President Pedro Castillo has spooked markets since taking over in July, sending the country's sol currency to record lows, the report notes. He recently fended off an impeachment attempt, the report adds. The report relays that the bank on Dec. 17 will publish a quarterly report with macroeconomic expectations. In the last report, the bank estimated the economy would grow 11.9% in the year, but central bank chief Julio Velarde said recently that growth could reach 13.2%, the report adds. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2021. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. . * * * End of Transmission * * *